This article develops and defends a new functional approach to scientific progress. I begin with a review of the problems of the traditional functional approach. Then I propose a new functional account of scientific progress, in which scientific progress is defined in terms of usefulness of problem defining and problem solving. I illustrate and defend my account by applying it to the history of genetics. Finally, I highlight the advantages of my new functional approach over the epistemic and semantic approaches (...) and dismiss some potential objections to my approach. (shrink)

Alexander Bird indicates that the significance of Thomas Kuhn in the history of philosophy of science is somehow paradoxical. On the one hand, Kuhn was one of the most influential and important philosophers of science in the second half of the twentieth century. On the other hand, nowadays there is little distinctively Kuhn’s legacy in the sense that most of Kuhn’s work has no longer any philosophical significance. Bird argues that the explanation of the paradox of Kuhn’s legacy is that (...) Kuhn took a direction opposite to that of the mainstream of the philosophy of science in his later academic career. This paper aims to provide a new way to understand and develop Kuhn’s legacy by revisiting the development of Kuhn’s philosophy of science in 1970s and proposing a new account of exemplar. Firstly, I propose my diagnosis of Kuhn’s “wrong turning” by identifying Kuhn’s two novel contributions: the introduction of paradigm and the proposal of the incommensurability thesis. Secondly, I argue that Kuhn made a conceptual/terminological turn from paradigm to theory, which undermined Kuhn’s novel contributions. Thirdly, I propose a new articulation of exemplar and propose an exemplar-based approach to analysing the history of science. Finally, I show how the exemplar-based approach can be applied to analyse the history of science by my case study of the early development of genetics. (shrink)

Philosophical progress is one of the most controversial topics in metaphilosophy. It has been widely debated whether philosophy makes any progress in history. This paper revisits the concept of philosophical progress. It first identifies two criteria of an ideal concept of philosophical progress. It then argues that our accounts of philosophical progress fail to provide such an ideal concept. Finally, it argues that not only do we not have a good concept of philosophical progress, we also do not need a (...) concept of philosophical progress in order to arrive at a good understanding of the history of philosophy. (shrink)

The functional approach to scientific progress has been mainly developed by Kuhn, Lakatos, Popper, Laudan, and more recently by Shan. The basic idea is that science progresses if key functions of science are fulfilled in a better way. This chapter defends the function approach. It begins with an overview of the two old versions of the functional approach by examining the work of Kuhn, Laudan, Popper, and Lakatos. It then argues for Shan’s new functional approach, in which scientific (...) progress is defined as an increase of usefulness of exemplary practices. (shrink)

Evidential Pluralism maintains that in order to establish a causal claim one normally needs to establish the existence of an appropriate conditional correlation and the existence of an appropriate mechanism complex, so when assessing a causal claim one ought to consider both association studies and mechanistic studies. Hitherto, Evidential Pluralism has been applied to medicine, leading to the EBM+ programme, which recommends that evidence-based medicine should systematically evaluate mechanistic studies alongside clinical studies. This paper argues that Evidential Pluralism can also (...) be fruitfully applied to the social sciences. In particular, Evidential Pluralism provides (i) a new approach to evidence-based policy; (ii) an account of the evidential relationships in more theoretical research; and (iii) new philosophical motivation for mixed methods research. The application of Evidential Pluralism to the social sciences is also defended against two objections. (shrink)

It has been widely received that one of Gregor Mendel’s most important contributions to the history of genetics is his novel work on developmental information (for example, the proposal of the famous Mendelian ratios like 1:2:1, 3:1, and 9:3:3:1). This view is well evidenced by the fact that much of early Mendelians’ work in the 1900s focuses on the retrodiction (viz. the re-analysis of the pre-exist data with Mendel’s approach). However, there is no consensus on what Mendel meant by development (...) (Entwicklung). Nor is there an agreement on the interpretation of Mendel’s laws of developmental series (Entwicklungsreihe). This chapter revisits Mendel’s notions of development and developmental series. Firstly, I argue that Mendel’s use of development is greatly influenced by Gärtner’s. Secondly, I show Mendel’s work on developmental series are novel and important for its new ways of experimentation, conceputalisation, and analysis. Thirdly, I argue that Mendel’s laws of developmental information were not about heredity. (shrink)

This paper provides a critical review of the debate over the philosophical foundations of mixed methods research and examines the notion of philosophical foundations. It distinguishes axiology-oriented from ontology-oriented philosophical foundations. It also identifies three different senses of philosophical foundations of mixed methods research. The weak sense of philosophical foundations (e.g., pragmatism) merely allows the possibility of the integration of both quantitative and qualitative methods/data/designs. The moderate sense of philosophical foundations (e.g., transformativism) provide a good reason to use mixed methods (...) in (at least some) social scientific research. The strong sense of philosophical foundations (e.g., dialectical pluralism) justifies a normative thesis that mixed methods research should be encouraged in (at least some) social scientific research. (shrink)

Historiographical analyses of the development of genetics in the first decade of the 20th century have been to a great extent framed in the context of the Mendelian-Biometrician controversy. Much has been discussed on the nature, origin, development, and legacy of the controversy. However, such a framework is becoming less useful and fruitful. This paper challenges the traditional historiography framed by the Mendelian-Biometrician distinction. It argues that the Mendelian-Biometrician distinction fails to reflect the theoretical and methodological diversity in the controversy. (...) It also argues that that the Mendelian-Biometrician distinction is not helpful to make a full understanding of the development of genetics in the first decade of the twentieth century. (shrink)

Among biologists and philosophers, there is an ongoing debate over the Modern Synthesis and the Extended Evolutionary Synthesis. Some argue that our current evolutionary biology is in need of (at least) some substantial revision or nontrivial extension, while others maintain that the Modern Synthesis remains the foundational framework for evolutionary biology. It has been widely debated whether the Extended Evolutionary Synthesis provides a more promising framework than the Modern Synthesis. The nature and methodological implications of the Extended Evolutionary Synthesis were (...) also examined. This paper offers an integrated historical and philosophical examination of the debate over the Extended Evolutionary Synthesis. It reviews the development of evolutionary biology of the twentieth century. It argues that there are substantial conceptual and theoretical differences between the Modern Synthesis and the Extended Evolutionary Synthesis, but they are not incommensurable paradigms in the Kuhnian sense. It also argues for a functional approach to the debate over these two frameworks of evolutionary theory. (shrink)

According to the laws of physics, the state of a physical system can only be measured by another system (usually a particular measuring device) via a physical interaction. However, when our brain is in a conscious mental state, it can in principle output the information about its physical state based on the psycho-physical correspondance between the mental state and the physical state. It is argued that this suggests that the conscious mind violates physical laws and it is not physical as (...) physicalism claims. (shrink)

Despite his enormous influence on the philosophy of science, Kuhn seems to have been unfairly treated by philosophers. His work was often oversimplified, misinterpreted, and quickly dismissed. The legacy of Kuhn for contemporary philosophy of science seems to be unfortunately thin. This book revisits his legacy for the history and philosophy of science and reflects on the prospect of the Kuhnian philosophy of science. It explores Kuhnian or neo-Kuhnian approaches to central issues in twenty-first philosophy of science. It also rereads (...) Kuhn's published and unpublished work and reassesses its philosophical significance and historical context. (shrink)

Philosophical analyses of causation have been centred on the question of what causation is. More precisely speaking, philosophers tend to address four different issues: metaphysical (what is causation out there?), epistemological (how can a causal claim be established and assessed?), conceptual (what does the word ‘cause’ mean?), and methodological (what methods ought one to use in order to establish and assess causal claims?). This chapter argues that the practical issue of causation (what is a causal claim for in practice?) is (...) highly relevant to the metaphysical, epistemological, conceptual, and methodological issues of causation. Any philosophical enquiry into causation without an examination of this practical issue is incomplete. In other words, a promising approach to causation ought to take all of the metaphysical, epistemological, conceptual, methodological, and practical issues into account. (shrink)

The nature of scientific explanation is controversial. Some maintain that all scientific explanations have to be contrastive in nature (contrastivism). However, others argue that no scientific explanation is genuinely contrastive (non-contrastivism). In addition, a compatibilist view has been recently devloped. It is argued that the debate between contrastivism and non-contrastivism is merely a linguistic dispute rather than a genuine disagreement on the nature of scientific explanation. Scientific explanations are both contrastive and non-contrastive in some sense (compatibilism). This paper examines the (...) debate between contrastivism and non-contrastivism in scientific explanation. It begins with a critical review of the arguments for contrastivism, for non-contrastivism, and for compatibilism and concludes with some remarks on the prospect of the issue. (shrink)

Scientific progress is a hot topic in the philosophy of science. However, as yet we lack a comprehensive philosophical examination of scientific progress. First, the recent debate pays too much attention to the epistemic approach and the semantic approach. Shan’s new functional approach and Dellsén’s noetic approach are still insufficiently assessed. Second, there is little in-depth analysis of the progress in the history of the sciences. Third, many related philosophical issues are still to be explored. For example, what are (...) the implications of scientific progress for the scientific realism/antirealism debate? Is the incommensurability thesis a challenge to scientific progress? What role does aesthetic values play in scientific progress? Does idealisation impede scientific progress? This book fills this gap. It offers a new assessment of the four main approaches to scientific progress (Part I). It also features eight historical case studies to investigate the notion of progress in different disciplines: physics, chemistry, evolutionary biology, seismology, psychology, sociology, economics, and medicine respectively (Part II). It discusses some issues related to scientific progress: scientific realism, incommensurability, values in science, idealisation, scientific speculation, interdisciplinarity, and scientific perspectivalism (Part III). (shrink)

This paper presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral posting adhering to bankruptcy laws. As such, the model can back out the market price of a collateralized contract. This framework is very useful for valuing outstanding derivatives. Using a unique dataset, we find empirical evidence that credit risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement and credit risk can sufficiently explain unsecured credit costs. This (...) finding suggests that failure to properly account for collateralization may result in significant mispricing of derivatives. We also empirically gauge the impact of collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit risk. (shrink)

We investigate the meaning of the wave function by analyzing the mass and charge density distributions of a quantum system. According to protective measurement, a charged quantum system has effective mass and charge density distributing in space, proportional to the square of the absolute value of its wave function. In a realistic interpretation, the wave function of a quantum system can be taken as a description of either a physical field or the ergodic motion of a particle. The essential difference (...) between a field and the ergodic motion of a particle lies in the property of simultaneity; a field exists throughout space simultaneously, whereas the ergodic motion of a particle exists throughout space in a time-divided way. If the wave function is a physical field, then the mass and charge density will be distributed in space simultaneously for a charged quantum system, and thus there will exist gravitational and electrostatic self-interactions of its wave function. This not only violates the superposition principle of quantum mechanics but also contradicts experimental observations. Thus the wave function cannot be a description of a physical field but a description of the ergodic motion of a particle. For the later there is only a localized particle with mass and charge at every instant, and thus there will not exist any self-interaction for the wave function. Which kind of ergodic motion of particles then? It is argued that the classical ergodic models, which assume continuous motion of particles, cannot be consistent with quantum mechanics. Based on the negative result, we suggest that the wave function is a description of the quantum motion of particles, which is random and discontinuous in nature. On this interpretation, the square of the absolute value of the wave function not only gives the probability of the particle being found in certain locations, but also gives the probability of the particle being there. We show that this new interpretation of the wave function provides a natural realistic alternative to the orthodox interpretation, and its implications for other realistic interpretations of quantum mechanics are also briefly discussed. (shrink)

We give a new argument supporting a gravitational role in quantum collapse. It is demonstrated that the discreteness of space-time, which results from the proper combination of quantum theory and general relativity, may inevitably result in the dynamical collapse of thewave function. Moreover, the minimum size of discrete space-time yields a plausible collapse criterion consistent with experiments. By assuming that the source to collapse the wave function is the inherent random motion of particles described by the wave function, we further (...) propose a concrete model of wavefunction collapse in the discrete space-time. It is shown that the model is consistent with the existing experiments and macroscopic experiences. (shrink)

The epistemic theory of causality views causality as a tool that helps us to predict, explain and control our world, rather than as a relation that exists independently of our epistemic practices. In this chapter, we first provide an introduction to the epistemic theory of causality. We then outline four considerations that motivate the epistemic theory: the failure of standard theories of causality; parsimony; the epistemology of causality; and neutrality. We illustrate these four considerations in the contexts of the social (...) sciences and the cognitive sciences. We argue that the epistemic theory provides a very natural account of causality across these contexts. (shrink)

We show that the physical meaning of the wave function can be derived based on the established parts of quantum mechanics. It turns out that the wave function represents the state of random discontinuous motion of particles, and its modulus square determines the probability density of the particles appearing in certain positions in space.

Social scientists often draw on a variety of evidence for their causal inferences. There is also a call to use a greater variety of evidence in social science research. This topical collection examines the philosophical foundations and implications of evidential diversity in the social sciences. It assesses the application of Evidential Pluralism in the context of the social sciences, especially its application to economics and political science. It also discusses the concept of causation in cognitive science and the implications of (...) evidential diversity for the social sciences. (shrink)

Recently there has been an increasing interest in metaphilosphy. The aim of philosophy has been examined. The development of philosophy has also been scrutinised. With the development of new approaches and methods, new problems arise. This collection revisits some of the metaphilosophical issues, including philosophical progress and the aim of philosophy. It sheds new light on some old approaches, such as naturalism and ordinary language philosophy. It also explores new philosophical methods (e.g., digital philosophy of science, conceptual engineering, and the (...) practice-based approach to logic) and their prospects. (shrink)

Lack of a historical sense is the hereditary defect of philosophers. … So what is needed from now on is historical philosophizing, and with it the virtue of modesty.

In quantum mechanics, the wave function of a N-body system is a mathematical function defined in a 3N-dimensional configuration space. We argue that wave function realism implies particle ontology when assuming: (1) the wave function of a N-body system describes N physical entities; (2) each triple of the 3N coordinates of a point in configuration space that relates to one physical entity represents a point in ordinary three-dimensional space. Moreover, the motion of particles is random and discontinuous.

Based on an analysis of protective measurements, we show that the quantum state represents the physical state of a single quantum system. This result is more definite than the PBR theorem [Pusey, Barrett, and Rudolph, Nature Phys. 8, 475 (2012)].

We investigate the validity of the field explanation of the wave function by analyzing the mass and charge density distributions of a quantum system. It is argued that a charged quantum system has effective mass and charge density distributing in space, proportional to the square of the absolute value of its wave function. This is also a consequence of protective measurement. If the wave function is a physical field, then the mass and charge density will be distributed in space simultaneously (...) for a charged quantum system, and thus there will exist a remarkable electrostatic self-interaction of its wave function, though the gravitational self-interaction is too weak to be detected presently. This not only violates the superposition principle of quantum mechanics but also contradicts experimental observations. Thus we conclude that the wave function cannot be a description of a physical field. In the second part of this paper, we further analyze the implications of these results for the main realistic interpretations of quantum mechanics, especially for de Broglie-Bohm theory. It has been argued that de Broglie-Bohm theory gives the same predictions as quantum mechanics by means of quantum equilibrium hypothesis. However, this equivalence is based on the premise that the wave function, regarded as a Ψ-field, has no mass and charge density distributions, which turns out to be wrong according to the above results. For a charged quantum system, both Ψ-field and Bohmian particle have charge density distribution. This then results in the existence of an electrostatic self-interaction of the field and an electromagnetic interaction between the field and Bohmian particle, which contradicts both the predictions of quantum mechanics and experimental observations. Therefore, de Broglie-Bohm theory as a realistic interpretation of quantum mechanics is probably wrong. Lastly, we suggest that the wave function is a description of some sort of ergodic motion (e.g. random discontinuous motion) of particles, and we also briefly analyze the implications of this suggestion for other realistic interpretations of quantum mechanics including many-worlds interpretation and dynamical collapse theories. (shrink)

A variety of philosophical positions have been proposed and developed to motivate, justify, and guide mixed methods research. This chapter provides a brief overview of the main positions in the debate over the philosophical foundations of mixed methods research. It shows that ‘philosophical foundations’ means differently while different positions provide ‘philosophical foundations’ in different senses. It also highlights the significance of the collaboration between researchers and philosophers in the examination of the philosophical foundations of mixed methods research.

Ratio, Volume 34, Issue 4, Page 303-311, December 2021.

It is shown that the heuristic "derivation" of the Schrödinger equation in quantum mechanics textbooks can be turned into a real derivation by resorting to spacetime translation invariance and relativistic invariance.

A combinatorial analysis of intrinsicality takes intrinsic properties to be independent of accompaniment: a property is intrinsic only if it is possible for a lonely or an accompanied thing to have it or lack it (I). Cameron argues that the combinatorial analysis in Langton & Lewis (1998) faces an epistemic circularity, which makes (I) suspicious. In this paper, I examine two approaches to free the combinatorial analyses from the circularity and find them all fail. Then I provide an outline of (...) an argument for (I) by appealing to the grounding analyses of intrinsicality, which shows an advantage of the grounding analyses over the combinatorial ones. (shrink)

Scientific revolution has been one of the most controversial topics in the history and philosophy of science. Yet it has been no consensus on what is the best unit of analysis in the historiography of scientific revolutions. Nor is there a consensus on what best explains the nature of scientific revolutions. This chapter provides a critical examination of the historiography of scientific revolutions. It begins with a brief introduction to the historical development of the concept of scientific revolution, followed by (...) an overview of the five main philosophical accounts of scientific revolutions. It then challenges two historiographical assumptions of the philosophical analyses of scientific revolutions. (shrink)

We analyze the possible implications of spacetime discreteness for the special and general relativity and quantum theory. It is argued that the existence of a minimum size of spacetime may explain the invariance of the speed of light in special relativity and Einstein’s equivalence principle in general relativity. Moreover, the discreteness of spacetime may also result in the collapse of the wave function in quantum mechanics, which may provide a possible solution to the quantum measurement problem. These interesting results might (...) have some important implications for a complete theory of quantum gravity. (shrink)

Bird’s new book, Knowing Science, provides an exemplar of how to do epistemology and philosophy of science together. While I wholeheartedly appreciate his attempt to bridge the gap between epistemology and philosophy of science and find his project promising, I am not convinced by the central thesis of the book that knowledge plays a central role in science. In this article, I focus on Bird’s epistemic account of scientific progress, which is the view that the nature of scientific progress is (...) the accumulation of scientific knowledge. Contra Bird, I argue that scientific progress cannot be fully characterised as the accumulation of scientific knowledge. (shrink)

The remarkable connections between gravity and thermodynamics seem to imply that gravity is not fundamental but emergent, and in particular, as Verlinde suggested, gravity is probably an entropic force. In this paper, we will argue that the idea of gravity as an entropic force is debatable. It is shown that there is no convincing analogy between gravity and entropic force in Verlinde’s example. Neither holographic screen nor test particle satisfies all requirements for the existence of entropic force in a thermodynamics (...) system. As a result, there is no entropic force in the gravity system. Furthermore, we show that the entropy increase of the screen is not caused by its statistical tendency to increase entropy as required by the existence of entropic force, but in fact caused by gravity. Therefore, Verlinde’s argument for the entropic origin of gravity is problematic. In addition, we argue that the existence of a minimum size of spacetime, together with the Heisenberg uncertainty principle in quantum theory, may imply the fundamental existence of gravity as a geometric property of spacetime. This provides a further support for the conclusion that gravity is not an entropic force. (shrink)

The meaning of the wave function and its evolution are investigated. First, we argue that the wave function in quantum mechanics is a description of random discontinuous motion of particles, and the modulus square of the wave function gives the probability density of the particles being in certain locations in space. Next, we show that the linear non-relativistic evolution of the wave function of an isolated system obeys the free Schrödinger equation due to the requirements of spacetime translation invariance and (...) relativistic invariance. Thirdly, we argue that the random discontinuous motion of particles may lead to a stochastic, nonlinear collapse evolution of the wave function. A discrete model of energy-conserved wavefunction collapse is proposed and shown consistent with existing experiments and our macroscopic experience. Besides, we also give a critical analysis of the de Broglie-Bohm theory, the many-worlds interpretation and other dynamical collapse theories, and briefly discuss the issues of unifying quantum mechanics and relativity. (shrink)

We investigate the implications of protective measurement for de Broglie-Bohm theory, mainly focusing on the interpretation of the wave function. It has been argued that the de Broglie-Bohm theory gives the same predictions as quantum mechanics by means of quantum equilibrium hypothesis. However, this equivalence is based on the premise that the wave function, regarded as a Ψ-field, has no mass and charge density distributions. But this premise turns out to be wrong according to protective measurement; a charged quantum system (...) has effective mass and charge density distributing in space, proportional to the square of the absolute value of its wave function. Then in the de Broglie-Bohm theory both Ψ-field and Bohmian particle will have charge density distribution for a charged quantum system. This will result in the existence of an electrostatic self-interaction of the field and an electromagnetic interaction between the field and Bohmian particle, which not only violates the superposition principle of quantum mechanics but also contradicts experimental observations. Therefore, the de Broglie-Bohm theory as a realistic interpretation of quantum mechanics is problematic according to protective measurement. Lastly, we briefly discuss the possibility that the wave function is not a physical field but a description of some sort of ergodic motion (e.g. random discontinuous motion) of particles. (shrink)

It is shown that the superposed wave function of a measuring device, in each branch of which there is a definite measurement result, does not correspond to many mutually unobservable but equally real worlds, as the superposed wave function can be observed in our world by protective measurement.

In this thesis, I explore motivational internalism and externalism, which concern the relationship between moral judgments and motivation. I first introduce the basic terms and different forms of internalism and externalism, including the externalist objections to internalism based on the famous counterexamples. I then argue against externalism by defending and developing Michael Smith’s fetishism argument. I not only respond to the externalist objections to the fetishism argument but also further argue against different externalist explanations of moral motivation that intend to (...) avoid the fetishism charge. Finally, I re-examine different forms of internalism in order to argue for a new form of internalism that can better preserve our internalist intuitions whilst accommodating the externalist counterexamples. My ultimate conclusion will be that the most plausible form of internalism to accept is constitutional, unconditional, relatively strong, direct internalism that is formulated in terms of dispositional desires. (shrink)

This article presents a new model for valuing financial contracts subject to credit risk and collateralization. Examples include the valuation of a credit default swap (CDS) contract that is affected by the trilateral credit risk of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to (...) a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in the CDS market. (shrink)

This paper presents an analytical model for valuing interest rate swaps, subject to bilateral counterparty credit risk. The counterparty defaults are modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread.

This article proposes a term structure model for dual-currency interest rate markets. The model assumes that volatility is a deterministic function of time alone. This volatility structure can reduce the dimension of the required state variables. An important special case is presented, which corresponds essentially to a Vasicek/Hull-White yield curve model in each currency. The model is very useful for pricing cross-currency derivatives.

Equity-linked securities with a guaranteed return become popular in a volatile market environment. This paper presents a new model for valuing guaranteed equity-linked notes. We consider a security whose value depends on the performance of a basket of equities averaged over certain points in time, but that is floored by a guaranteed amount. We show that the security’s price is given by the sum of the guaranteed amount plus the price of an Asian style option on the basket above. The (...) model provides analytical formulas for the security’s price as well as for corresponding hedge ratios; these respective formulas appear to be accurate over a wide range of underlying security parameter values, based on numerical testing against a Monte Carlo benchmark, Finally, we apply our method to value a type of segregated fund with a maturity guarantee. (shrink)

This article presents a generic model for pricing financial derivatives subject to counterparty credit risk. Both unilateral and bilateral types of credit risks are considered. Our study shows that credit risk should be modeled as American style options in most cases, which require a backward induction valuation. To correct a common mistake in the literature, we emphasize that the market value of a defaultable derivative is actually a risky value rather than a risk-free value. Credit value adjustment (CVA) is also (...) elaborated. A practical framework is developed for pricing defaultable derivatives and calculating their CVAs at a portfolio level. (shrink)

Thomas Kuhn (1922-1996) is widely considered as one of the most important philosophers of science of the 20th century, while his The Structure of Scientific Revolutions (SSR) is regarded as one of the most influential works in the philosophy ofscience. At the same time, however, his place within philosophy of science remains ambiguous. On the one hand, despite the popularity of SSR, there is no proper ‘Kuhnian school of thought’ in HPS. On the other hand, the interest towards Kuhn does (...) not seem to fade away and the number of publications about his work does not seem to decrease. We suggest that there are at least three different ways to go ‘beyond SSR’: (i) by scrutinising the development of Kuhn’s thought, from his pre- to his post-SSR writings; (ii) by contextualising Kuhn in the philosophical milieu of his time, thus interpreting his view as emerging from the intellectual exchanges he had with contemporary philosophers; (iii) by reinterpreting and developing some of his most known ideas, in ways that perhaps Kuhn himself was not able to contemplate. (shrink)

Both motivational internalism and externalism need to explain why sometimes moral judgments tend to motivate us. In this paper, I argue that Dreier’ second-order desire model cannot be a plausible externalist alternative to explain the connection between moral judgments and motivation. I explain that the relevant second-order desire is merely a constitutive requirement of rationality because that desire makes a set of desires more unified and coherent. As a rational agent with the relevant second-order desire is disposed towards coherence, she (...) will have some motivation to act in accordance with her moral judgments. Dreier’s second-order desire model thus collapses into a form of internalism and cannot be a plausible externalist option to explain the connection between moral judgments and motivation. (shrink)

The one-side defaultable financial derivatives valuation problems have been studied extensively, but the valuation of bilateral derivatives with asymmetric credit qualities is still lacking convincing mechanism. This paper presents an analytical model for valuing derivatives subject to default by both counterparties. The default-free interest rates are modeled by the Market Models, while the default time is modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a (...) better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread. (shrink)

This paper presents a new model for valuing hybrid defaultable financial instruments, such as, convertible bonds. In contrast to previous studies, the model relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due to convertible underpricing. Empirically, however, we do not find evidence (...) supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

This article presents a new methodology for pricing and hedging commodity derivatives. A generic model calibration is provided. The calibration procedure consists of an offline step where the mean reversion rates, the ratio of the long and short factor volatilities and the correlation between the long and short factors are determined via historical analysis. This offline step is performed relatively infrequently. There’s also an online step of the calibration which happens every time the model is used to price an option (...) or to simulate price paths. Empirical study shows that the model is quite accurate. (shrink)